Netflix, $NFLX, is to taking away its cheapest ad-free plan, the Basic Netflix subscription that costs $11.99
Netflix, $NFLX, is to taking away its cheapest ad-free plan, the Basic Netflix subscription that costs $11.99, per the Verge.
Netflix has ceased allowing new or returning members to enroll in the ad-free Basic subscription, which was priced at $11.99 per month. While unveiling its latest earnings results, Netflix executives informed investors of the retirement of this plan in countries where ad-supported options are accessible, with Canada and the UK being the initial nations affected in the second quarter of 2024. Subsequently, subscribers will now have the $15.49 per month alternative as the most affordable ad-free plan, marking a significant price increase from the $11.99 option. Notably, the Basic plan was discontinued for new subscribers in Canada last year before extending this change to the US and UK.
In the fourth quarter of 2023, Netflix's ad-supported membership witnessed a remarkable surge of almost 70% quarter-over-quarter. This growth was attributed to enhancements in the streaming service's offerings, such as the introduction of downloads. The decision to phase out the Basic plan for new and rejoining members in ad-supported markets further contributed to this boost. The ad-supported plan currently constitutes 40% of all Netflix sign-ups in these markets. The company now intends to retire the Basic plan in some of its ad-supported countries, commencing with Canada and the UK in Q2 2024.
During a video interview for investors, co-CEO Greg Peters disclosed that the ad-supported offering now boasts 23 million monthly active users. The company is prioritizing scaling this segment, seeking to make it more appealing with various upgrades. Last year, Netflix enhanced the cheapest version of the ad-supported plan by increasing the resolution to 1080p, enabling multiple streams, and introducing downloads. The executives emphasized their commitment to improving Netflix through investments and innovations, suggesting that members may occasionally be required to pay a bit extra to reflect these enhancements. In 2023, Netflix added 13.1 million subscribers, reaching a total of 247 million globally.
In an unexpected move, Netflix announced a 10-year deal to stream WWE's Monday Night Raw, valued at $5 billion. This strategic agreement signifies Netflix's significant venture into the realm of live sports content. The deal provides Netflix with exclusive streaming rights to Monday Night Raw for a decade, with an option to terminate the contract after five years. This move follows Netflix's recent foray into live sports, including its inaugural live sports broadcast of a golf competition between PGA pros and F1 racers. Furthermore, the streaming giant plans to host a live tennis match featuring veteran player Rafael Nadal and Carlos Alcaraz in March. The WWE deal highlights Netflix's growing commitment to offering diverse and engaging content to its global audience.